News & Events

Competition Authority blocks acquisition by Kingspan of Xtratherm

26 October 2006

The Competition Authority announced on 26 October 2006 that it has decided to block the proposed acquisition of Leanort Group (Xtratherm) by Kingspan Group plc (Kingpsan) on the grounds that such a transaction would substantially lessen competition in the manufacture and provision of insulation materials in the State.

As a result the acquisition may not be put into effect.

The Competition Authority’s determination follows a four-month market investigation by the Authority’s Mergers Division.

It is only the second time the Competition Authority has blocked a proposed merger since the provisions of the Competition Act regarding merger control came into effect in January 2003. The first such case involved IBM and Schlumberger in October 2004.

The Competition Authority has stated that it will publish its determination on or before 25th November 2006 in accordance with its obligation under section 22 of the Competition Act 2002 to publish its determination within one month.  We will provide a further update then.

Either party may appeal to the High Court the Competition Authority’s determination pursuant to section 24 of the Competition Act 2002.  Such an appeal must be made within one month after the date on which the undertaking concerned was informed by the Authority of the determination.

Attribute to Robert McDonagh, Solicitor, Mason Hayes & Curran.

Robert McDonagh is a solicitor in the commercial department of Mason Hayes & Curran. For more information, please contact Robert at rmcdonagh@mhc.ie or + 353 1 614 5000. The content of this article is provided for information purposes only and does not constitute legal or other advice. Mason Hayes & Curran (www.mhc.ie) is a leading business law firm with offices in Dublin, London and New York.

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